FAQs

Who are the people behind Kalon?

Please visit the team section for more information about the team, click here.

What investment restrictions must a 12J fund adhere to?

The company must satisfy the following requirements by the end of each year of assessment after the expiry of 36 months from the first date of issue of Venture Capital Shares:

A minimum of 80% of the expenditure incurred by the VCC to acquire assets must be for qualifying shares, and each investee company must, immediately after the issuing of the qualifying shares, hold assets with a book value not exceeding: o R500 million in any junior mining company; or o R50 million in any other qualifying company

The expenditure incurred by the VCC to acquire qualifying shares in any one qualifying company must not exceed 20% of any amounts received in respect of the issue of Venture Capital Shares.

A 12J fund, further has a discretionary investment leeway of 20% of raised capital to invest in non-qualifying companies.

What are the tax implications of section 12J?

By investing in Kalons fund, the full amount invested is 100% tax deductible. Section 12J offers individuals, funds, trusts and companies resident in South Africa, an attractive tax rebate on investments into the appropriate 12J Fund. The tax rebate is up to 45% for individuals, funds and trusts and 28% for companies.

By way of illustration:

Description

Individuals/Trusts

Corporates

Initial Investment

R 1 000 000

R 1 000 000

Tax relief (in the tax year of initial investment)

(R450 000)

(R280 000)

Net Investment
(Risk Capital)

R550 000

R720 000

Effective tax relief

45%

28%

What is Section 12J of the income tax act?

Section 12J was set up by government to promote the economic growth of small to medium sized businesses. By doing so, providing equity finance to these companies, government has allowed for a full tax break. Please refer to the Section 12J section of this website for more information, click here.

At what stage will Kalon consider investing in a business?

Kalon typically invests in companies that are revenue producing. However, we are open to investing in companies which have a proven model and can show traction.

Who qualifies for investment?

We typically invest in companies with: Strong management team

Clearly defined exit strategy

Scalable business model (profits increase faster than revenue)

Early stage with a revenue and profitability track record which require growth capital – a large percentage of the overall portfolio

Early stage businesses with revenue but not yet profitable

Traction with a referenced client base

High growth potential market opportunities – cross border growth prospects with export potential, incl. business models with potential for significant scale both within South Africa and abroad

What industries does Kalon invest in?

Kalon invests in disruptive digital technology high growth companies, that provide technology based solutions. Kalon invests in technology companies across all industries.

How risky is it investing in this fund?

As this fund invests in relatively small and young companies there is an inherent risk of loss of capital. Investing in a fund like this comes with a medium to high risk. Knowing such, an investor should not invest a large proportion of their wealth in this fund. It is suggested that no more than 5-7% of one’s portfolio should be invested in Kalon.

What is the projected return for the fund?

What is the maximum the fund is expecting to raise?

Kalon aims to be the leading disruptive technology fund with assets over R1 billion.

What are the fees involved with this investment?

There will be a once-off capital raising fee of 3% on all funds raised by the Manager on behalf of the Company as well as an asset management fee of 2,5% per annum payable quarterly in advance.

What is the minimum and maximum subscription per investor?

The minimum is R100 000 with a maximum of R20 000 000, however this is subject to change and will be set out in the prospectus.

How do I report this investment to SARS for the allowable tax refund?

Investors will be entitled to deduct the full amount of their investment in Kalon from their taxable income in the tax year that the investment was made. A certificate to substantiate a claim for tax deduction will be sent to investors within 6 weeks of the closing date. Investors can claim the tax relief by claiming the deduction in their Income Tax returns.

Can we top up our initial investment?

Investors will be able to invest up to R20 million provided the fund is open for investment.

Can we invest after the 28th of February?

You will be allowed to invest provided the fund is open as specified by the latest prospectus.

How often will I be updated on this investment?

Investors will receive updated quarterly statements. There will also be an annual general meeting

When can we exit the investment?

You can exit the investment at any time, however if you exit before a period of 5 years, you will be required to pay the relevant tax rebate you received, this is set out by the section 12J act.

What do we receive once we invest?

Once you invest, you will receive a share and tax certificate. (This will also provide SARS with the proof it needs to allow for the relevant tax break).

What is the process to invest in Kalons fund?

How risky is it investing in this fund?

As this fund invests in relatively small and young companies there is an inherent risk of loss of capital. Investing in a fund like this comes with a medium to high risk. Knowing such, an investor should not invest a large proportion of their wealth in this fund. It is suggested that no more than 5-7% of one’s portfolio should be invested in Kalon.

What is the projected return for the fund?

What is the maximum the fund is expecting to raise?

Kalon aims to be the leading disruptive technology fund with assets over R1 billion.

What are the fees involved with this investment?

There will be a once-off capital raising fee of 3% on all funds raised by the Manager on behalf of the Company as well as an asset management fee of 2,5% per annum payable quarterly in advance.

What is the minimum and maximum subscription per investor?

The minimum is R100 000 with a maximum of R20 000 000, however this is subject to change and will be set out in the prospectus.

How do I report this investment to SARS for the allowable tax refund?

Investors will be entitled to deduct the full amount of their investment in Kalon from their taxable income in the tax year that the investment was made. A certificate to substantiate a claim for tax deduction will be sent to investors within 6 weeks of the closing date. Investors can claim the tax relief by claiming the deduction in their Income Tax returns.

Can we top up our initial investment?

Investors will be able to invest up to R20 million provided the fund is open for investment.

Can we invest after the 28th of February?

You will be allowed to invest provided the fund is open as specified by the latest prospectus.

How often will I be updated on this investment?

Investors will receive updated quarterly statements. There will also be an annual general meeting

When can we exit the investment?

You can exit the investment at any time, however if you exit before a period of 5 years, you will be required to pay the relevant tax rebate you received, this is set out by the section 12J act.

What do we receive once we invest?

Once you invest, you will receive a share and tax certificate. (This will also provide SARS with the proof it needs to allow for the relevant tax break).

What industries does Kalon invest in?

Kalon invests in disruptive digital technology high growth companies, that provide technology based solutions. Kalon invests in technology companies across all industries.

Who are the people behind Kalon?

Please visit the team section for more information about the team, click here.

What investment restrictions must a 12J fund adhere to?

The company must satisfy the following requirements by the end of each year of assessment after the expiry of 36 months from the first date of issue of Venture Capital Shares:

A minimum of 80% of the expenditure incurred by the VCC to acquire assets must be for qualifying shares, and each investee company must, immediately after the issuing of the qualifying shares, hold assets with a book value not exceeding: o R500 million in any junior mining company; or o R50 million in any other qualifying company

The expenditure incurred by the VCC to acquire qualifying shares in any one qualifying company must not exceed 20% of any amounts received in respect of the issue of Venture Capital Shares.

A 12J fund, further has a discretionary investment leeway of 20% of raised capital to invest in non-qualifying companies.

What are the tax implications of section 12J?

By investing in Kalons fund, the full amount invested is 100% tax deductible. Section 12J offers individuals, funds, trusts and companies resident in South Africa, an attractive tax rebate on investments into the appropriate 12J Fund. The tax rebate is up to 45% for individuals, funds and trusts and 28% for companies.

By way of illustration:

Description

Individuals/Trusts

Corporates

Initial Investment

R 1 000 000

R 1 000 000

Tax relief (in the tax year of initial investment)

(R450 000)

(R280 000)

Net Investment
(Risk Capital)

R550 000

R720 000

Effective tax relief

45%

28%

What is Section 12J of the income tax act?

Section 12J was set up by government to promote the economic growth of small to medium sized businesses. By doing so, providing equity finance to these companies, government has allowed for a full tax break. Please refer to the Section 12J section of this website for more information, click here.

About Kalon

Kalon Venture Partners invests in and builds a portfolio of high growth technology companies, with innovative business models, geared to existing and emerging institutions and their customers.

Physical Address

Leron has over 20 years of experience as a technology specialist, and a wealth of experience in launching and growing companies. Leron completed his BCOM degree at the University of South Africa.

He started his career developing websites, managing and supporting networks and learning the ins and outs of all things technology related. Consequently, Leron’s entrepreneurial flair led him to found and run a multitude of companies in the fast-moving consumer goods space, garnering experience in sales and distribution, marketing and branding and overall operational expertise in running a multi-million-rand business. During his tenure of 9 years at the helm of the business, Leron negotiated with major multi-national brands and oversaw a turnover of a billion rand.

Leron is incredibly passionate about the new world of disruptive innovation and is excited about identifying and growing entrepreneurs in the venture capital tech space.

FATIMA HABIB

Fatima Habib, has a strong academic pedigree, and holds a Master’s Degree in Economics, Industrial and Labour Studies, HR and OD from the University of Natal (Now UKZN,) an Honours Degree in Applied Psychology (Wits) and an undergraduate degree in Social Sciences (University of Natal). Fatima successfully began her career with Deloitte and Touche, progressing to very senior positions in both corporate SA and the SA government. A seasoned executive, with over 20 years’ experience that spanned various environments from telecommunications, to a Wall Street firm in New York, and then private banking; following a career move to contributing to the public sector. Fatima has held a number of executive positions during her diverse career, including, inter alia, being the Executive Director: Corporate Services at the City of Cape Town, Executive: Corporate Services at the JDA, Regional HR executive at Telkom, GM of Absa Private Bank, Chief of Shared Services at SITA, Assistant GM at Smarte Carte.

Fatima has been appointed by the Minister of Basic Education, to Chair the ICT Advisory Committee to the Minister of Basic Education (DBE) and the Director- General of the DBE. She has previously served on the Board of SEDA, having been appointed by the Minister of Trade and Industry and currently serves on the boards of a number of companies where she sits on various board committees as well chairing these like them. In addition to being on the boards of companies, she also serves on boards of NPOs like The Bag Factory and The Gauteng Cricket Board.

GIL SPERLING

After graduating with a B.Sc Electrical Engineering from Wits University, Gil Sperling founded Popimedia at age 23. With his passion for tech, entrepreneurship skills and pure tenacity, Gil took Popimedia global with 7 international offices and to being the only Facebook Marketing Partner in Africa, one of 40 companies around the world. As one of the leading Ad Tech companies, Popimedia serves Fortune 500 brands globally using its proprietary platform meedee8. Seven years later, Popimedia was acquired by Public is Group.

Through his journey of entrepreneurship and scaling a company to exit, Gil invests, consults and mentors several technology companies, while also sitting on the board and investment committee of Kalon Venture Partners.

ROMEO KUMALO

Romeo is currently the CEO of Washirika Holdings, an investment holding company with focus in construction, clean energy and ICT. He was previously the CEO of Vodacom/Vodafone International, responsible for all the African markets. In 2007, he was appointed to the board of Vodacom South Africa as Executive Commercial Director and was a member of the Vodacom Executive Committee until 2015. He served as non-executive director of Vodacom Tanzania, Lesotho, Mozambique, DR Congo and other Vodacom group of companies.

An accomplished leader and commercial strategist, with over 20 years’ experience in Information, Communication and Telecoms industries, a proven track record of building teams, creating value and turning around underperforming businesses, Romeo serves on various private company boards and holds a Master Degree in Commerce and executive management certificates from WITS, INSEAD, and HARVARD Business School.

GIL OVED

An astute businessman, qualified Chartered Financial Analyst, entrepreneur and investor, Gil is group co-CEO of The Creative Counsel (TCC) which he co-founded with Ran Neu-Ner in 2001. The company was acquired by Publicis Groupe, a leading global marketing, communication, and business transformation company in the largest deal in advertising history in South Africa and the African continent. Through television, Gil has been able to share his entrepreneurship lessons with a wider audience. He is currently on M-Net’s Shark Tank South Africa and was also one of the Dragons on Dragons Den South Africa, which premiered in the last quarter of 2014. Together with the four dragons from the Dragons’ Den South African, Gil has co-authored I’M IN, a book to inspire entrepreneurs through their collective lessons learnt in business.

Gil has won many awards, the most recent being the EY Southern Africa World Entrepreneur Award for 2016 in the Exceptional category. He is also the Johannesburg chapter chair for the Young Presidents Organisation as well as the Africa Regional Forum Officer.

NICHOLAS LIEBMANN

Nic completed a commerce degree majoring in finance at Bond University after which he gained international experience working abroad in the United Kingdom.

Nic established a wealth management company, which was acquired by Sasfin Bank Limited where he continued to work for 4 years, after which he left to set up Caleo Capital.

Nic has been in finance for over 15 years and is currently the co-founder and joint- CEO of Caleo Capital, an asset management company whose expertise span private equity, wealth management, financial advisory, property and venture capital. Caleo also manages a private equity portfolio of investments in the renowned Maboneng Precinct in central Johannesburg.

ARNOLD BASSERABIE

Arnold was the Group Chief Executive of Fedsure Financial Services Group from 1988 – 2001, during which time its asset base grew by 25% pa compound to R40b and its share price appreciated by approximately 20% pa compounded. Since then he has been a strategic business consultant, focusing on strategy and business development, mergers and acquisitions, and related activities, in a diverse range of industries. Arnold obtained a B. Sc (Mathematics; Math Stats) from the University of Witwatersrand, is a qualified actuary and a certified financial planner.

His awards include: Insurance Man of the Year, IMM Marketing Man of the Year, Jewish Business Achiever of the Year and Lifetime Achiever, and the World Presidents Organisation’s International Best of the Best Regional Chair.

CLIVE BUTKOW

Clive is the former Chief Operating Officer (COO) of Accenture South Africa, and has 28 years management consulting experience. During his tenure at Accenture (formerly Arthur Anderson and Anderson Consulting), he played numerous leadership roles including managing director of Accenture South Africa’s Technology business as well as managing director of Accenture’s Resources and Utilities businesses. In addition to his COO role, during the last 6 years, he led sales for Accenture’s Technology business, cultivating an entrepreneurial mind-set, which helped grow Accenture into one of the top emerging market companies.

Clive has developed deep technology skills from working across multiple industries including Financial Services, Resources, Retail, Automotive and Communications. He has leveraged these technology and business transformation skills and helped drive significant shareholder value for many South African clients. Since January 2013, he has supported and mentored many technology businesses, assisting them in driving growth. Clive sits on the boards of numerous IT companies.

Clive joined Arthur Anderson in 1985 (now Accenture) after graduating from the University of the Witwatersrand with a B.Sc. degree in Computer Science and Applied Mathematics. Clive joined Grovest, section 12J venture capital company in 2012, as a non- executive director.

In 2016, Clive formed a new venture capital company, Kalon Venture Partners, focusing on investing in digital disruptive technologies.

Malcolm Segal

After qualifying as a Chartered Accountant from the University of Witwatersrand in 1972, Malcolm practiced as a partner of Grant Thornton (Chartered Accountant and Business Advisers) and was elected managing partner of the Johannesburg office in 1986 and National Executive Chairman in 1989. Malcolm resigned from Grant Thornton in 1997 to establish a private equity investment fund, which he managed until acquired by Sasfin Holdings Limited in 2005. In February 2012, Malcolm resigned from the boards of both Sasfin Holdings Limited and Sasfin Bank Limited to enable him to pursue his passion – entrepreneurship and entrepreneurial investment activities.

Malcolm currently sits on the boards of various companies in which he holds private equity investments and inter alia is also an External Member of the Special Credit Committee of the Industrial Development Corporation of South Africa Limited and a member of the Listings Advisory Committee of AltX (Alternate Exchange of the Johannesburg Securities Exchange). Malcolm is also the Chairman of VCMS.